Buy Here, Pay Here?
So how does it work...What is the down payment? How long are you locked in? What can you expect to pay a month? What about insurance?
It can be a good option if you can't find a lender by yourself.
It can be a good option if you can't find a lender by yourself. By here, pay here means that car gets funded by the dealership and not by a third party lender, such as- bank. There are certainly some positives about dealership financing but at the same time you need to be aware of its pitfalls too.
First, you don't get the opportunity to shop around for the lender. Hence, may end up paying more on charges as you are forced to accept their terms.
You may have to pay high interest rate on the loan. Poor credit loans always cost more than conventional lending. Hence, if you finance it through a bank you may pay much less for the same car.
Horrible credit doesn't always mean that you can't find a lender. There are companies which would finance buyers with poor credit rating. All it would need is shopping around.
